Correlation Between Marfin Investment and Hellenic Petroleum
Can any of the company-specific risk be diversified away by investing in both Marfin Investment and Hellenic Petroleum at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Marfin Investment and Hellenic Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marfin Investment Group and Hellenic Petroleum SA, you can compare the effects of market volatilities on Marfin Investment and Hellenic Petroleum and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Marfin Investment with a short position of Hellenic Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and Hellenic Petroleum.
Diversification Opportunities for Marfin Investment and Hellenic Petroleum
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marfin and Hellenic is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and Hellenic Petroleum SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Petroleum and Marfin Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Marfin Investment Group are associated (or correlated) with Hellenic Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Petroleum has no effect on the direction of Marfin Investment i.e., Marfin Investment and Hellenic Petroleum go up and down completely randomly.
Pair Corralation between Marfin Investment and Hellenic Petroleum
Assuming the 90 days trading horizon Marfin Investment Group is expected to under-perform the Hellenic Petroleum. In addition to that, Marfin Investment is 1.81 times more volatile than Hellenic Petroleum SA. It trades about -0.05 of its total potential returns per unit of risk. Hellenic Petroleum SA is currently generating about 0.01 per unit of volatility. If you would invest 670.00 in Hellenic Petroleum SA on August 31, 2024 and sell it today you would earn a total of 10.00 from holding Hellenic Petroleum SA or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. Hellenic Petroleum SA
Performance |
| Timeline |
| Marfin Investment |
| Hellenic Petroleum |
Marfin Investment and Hellenic Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and Hellenic Petroleum
The main advantage of trading using opposite Marfin Investment and Hellenic Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment position performs unexpectedly, Hellenic Petroleum can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hellenic Petroleum will offset losses from the drop in Hellenic Petroleum's long position.| Marfin Investment vs. Thrace Plastics Holding | Marfin Investment vs. Sidma SA Steel | Marfin Investment vs. Optima bank SA | Marfin Investment vs. Profile Systems Software |
| Hellenic Petroleum vs. Motor Oil Corinth | Hellenic Petroleum vs. Greek Organization of | Hellenic Petroleum vs. Mytilineos SA | Hellenic Petroleum vs. Hellenic Telecommunications Organization |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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